Since you are a Realtor and your specific question is â€œWhat's the â€˜BESTâ€™ way to get an offer accepted,â€
The key word here is â€œBESTâ€ â€“ there are lots of good answers below, however, if you really want to land the property, the following is the â€œBESTâ€ way to do it:
1. Talk to the listing agent as soon as your buyer makes you aware they are interested in the property â€“ you want to make sure you know the offer deadline (if any) and exactly what the sellers are looking for.
2. Contact the listing agent again about 1 hour before the deadline. Ask if they are willing to discuss any of the terms of existing offers or current offered prices. In California, it is NOT illegal for the listing agent to discuss the prices and terms of existing offers â€“ in fact, this practice is clearly spelled out in the C.A.R. form DA (DISCLOSURE AND CONSENT FOR REPRESENTATION OF MORE THAN ONE BUYER OR SELLER), which states:
â€œNON CONFIDENTIALITY OF OFFERS: Buyer is advised that Seller or Listing Agent may disclose the existence, terms, or conditions of buyerâ€™s offer unless all parties have signed a written confidentiality agreement.* Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the Listing Agentâ€™s marketing strategy and the instructions of the seller.â€
Although real estate practice varies from listing agent to listing agent, it is usually in the sellerâ€™s best interest and incumbent in the listing agentâ€™s fiduciary responsibility to the seller to provide you with meaningful information.
3. Explain that you are writing an â€œAS-ISâ€ all cash offer with a 5-day Inspection Contingency time period (no other contingencies) and you want to make sure there is no need for a counter. If Inspection Reports and Disclosures have been provided up front, you can actually write with no contingencies.
4. After your discussion with the listing agent, write an offer as follows:
â€¢ All cash â€“ higher than other existing offers
â€¢ Close of escrow â€“ 10 days (unless property is occupied â€“ then go with listing agentâ€™s requested time period â€“ and provide free rent-back if required)
â€¢ 10% deposit â€“ non refundable
â€¢ No loan contingency
â€¢ No appraisal contingency
â€¢ No inspection contingency (if full disclosure/inspection docs were provided up front) OR if you did your own inspections prior to writing â€“ otherwise 5 days
â€¢ Property to be purchased â€œAS-ISâ€
â€¢ Standard cost assignments from page 2 of the contract in keeping with local customs
â€¢ No home warranty provided by seller
Include the following with your offer:
â€¢ Copy of the buyerâ€™s cashierâ€™s check for the deposit
â€¢ Verification of funds for the purchase price
â€¢ A signed receipt page for all disclosures/reports
â€¢ A rent-back agreement if the property is occupied and rent-back is required
There will probably be gnashing of teeth from many who read this AND Iâ€™m very well aware that this approach will not work for many buyers (for obvious reasons). However, Iâ€™m addressing the word â€œBESTâ€ only. Iâ€™m also very aware that practices such as this are artificially increasing market values and freezing out FHA and VA buyers (I know because I represent a lot of them). Iâ€™m also not assigning any â€œmoralâ€ value to this type of practice â€“ simply addressing the word â€œBESTâ€.
Since over 30% of purchases in the past few months have been with cash, this is not an unrealistic scenario â€“ similar practices have been used on some of my listings this past year with good results for the sellers.
* Typically the case with REOs.
That is what the 'data mining' is all about when agents ask the home owner those innocent sounding questions. That is why so much time is spent analyzing the images hanging on the wall and book titles on the desk and end table.
Get the seller on to the next chapter of their lives as easily as possible.
If you attempt to bypass established communication channels, the RED Flags will go up.
Best of success to you,
2. Tighten your timeframes (no reason why appraisal & home inspection can not be done in 7-10 days)
3. Make sure you have a decent good faith deposit (at least 2% but should be 3%, unless a short sale )
4. Choose a lot of seller select services.
5. Make sure you submit proof of funds and a good local lender pre approval letter
6. Call the listing agent. Let them know you are easy to work with, don't play games, and have eager clients willing to close.
Obviously price plays into it but sometimes it's about taking a solid offer that will close with an agent that is not an idiot. I always check my ego at the door. At the end of the day it's about making a deal for the buyer and seller.
Not long ago, I wrote about what sellers look for in a good offer
*Price -- obviously, the higher, the better
*Deposit and downpayment -- similarly, the higher the better (shows how serious the buyer is and how much he's willing to risk)
*Contingencies and timelines -- the shorter the better...i.e., quicker escrow period unless the seller prefers a longer period; shorter or no inspections, shorter or no loan appraisal/loan approval contingencies. The strongest offer may have no contingencies at all. But this is a huge risk.
*Terms -- as is, no request for repairs or credits.
*Buyer may offer to pay for some of seller's closing costs
â€¢ Sometimes, a preapproval letter isn't enough...some sellers may request proof of funds to make sure the buyer can make good on the contract
* Best and highest offer from the get-go, and not write an offer hoping for a counteroffer. You may get only one chance. Make it count
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience